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Technology Stocks : Apple Inc.

AAPL 278.85

+0.5%

Nov 28 9:30 AM EST

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To: Bob Jagow who wrote (1373)	2/12/1997 1:46:00 PM
From: GS_Wall Street	of 213173

Bob, I have a quick way to value Apple. You take thier projected 1997 sales and multiply by 2.5%. This is what the company should be making on a after tax basis. Divide by the number of shares outstanding and multiple by a PE valuation. Using a PE of about 18 assuming that this company has hit bottom and is going to rebound the number comes out in the 18 to 20 dollar range. Using the same formula project ahead one year and use an increasing margin of 3.5% and about the same multiple and you come up with a valuation close to $30 per share. If Apple is a turnaround situation currently fair value is ~$18 going to ~$30 next year. Starts to look good from here.

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